Samsung Biologics signs ADC CDO deal with LegoChem Bio

Samsung Biologics Co. has agreed with South Korean biotech company LegoChem Biosciences Inc. to provide contract development organization (CDO) services for the development of antibody-drug conjugate (ADC) therapies.

The world’s top bio contract development and manufacturing organization by production capacity announced on Wednesday that under the deal, it will jointly develop the antibody essential in ADC therapies with LegoChem Biosciences. 

For the deal, Samsung Biologics will provide LegoChem Biosciences its CDO services for developing cell lines and producing clinical materials for ADC therapies.

The two companies did not disclose the financial terms of the CDO contract.

FAST INROADS INTO THE ADC MARKET

With the latest deal, Samsung Biologics will accelerate its inroads into the ADC contract development and manufacturing organization (CDMO) market.

In October last year, Samsung Biologics President & Chief Executive Officer John Rim reiterated the company's earlier plan to complete the construction of an ADC factory in 2024 at its bio campus inside the free economic zone in Songdo, Incheon, west of Seoul, to diversify its business.

The Korean bio CDMO giant has been actively investing in biotech companies with promising ADC technologies at home and abroad through the Samsung Life Science Fund, a strategic investment fund jointly set up by Samsung Biologics, Samsung C&T Corp. and Samsung Bioepis Co. and managed by Samsung Venture Investment Corp.

“We will continue to make aggressive investments to enhance our competitiveness in the ADC sector, which has emerged as the next-generation biotechnology, as part of our preemptive efforts,” Rim said on Wednesday after the LegoChem Bio deal was announced.

“We will reinforce collaboration with promising local biotech companies like LegoChem Bio to fortify technological prowess.”

Samsung Biologics is currently manufacturing antibody drugs, biosimilars and other products for 14 global healthcare giants such as Pfizer Inc., Bristol Myers Squibb and Novartis.

LEGOCHEM BIOSCIENCES AS A PROMISING ADC PLAYER

ADC therapy has emerged as a promising cancer treatment despite its high technological barriers. Once they are successfully developed, ADC drugs have shown excellent clinical efficacy against various cancers such as breast and gastric cancers as well as urothelial carcinoma.

The global ADC therapy market is forecast to expand from $7.7 billion in 2023 to $38.7 billion in 2029 at a compound annual growth rate of 23.7%, according to global bio data compiled by the Korea Drug Development Fund.

ADCs are called biological missiles, consisting of antibodies, payloads and linkers. The antibody guides the payload, or small molecule drugs that act as a warhead, and the linker connects the antibody and the payload.

LegoChem Biosciences’ linker technology is considered superior to its peers.

The Korean biotech company in December signed a $1.7 billion deal to license out its proprietary ADC candidate to Janssen Biotech Inc. This is the biggest-ever drug out-licensing deal that a Korean biotech or pharmaceutical company has ever signed.

Korea’s snack and confectionery maker Orion Group last month agreed to buy a controlling stake in LegoChem Biosciences for 548.5 billion won ($413.5 million) in its push into the biopharmaceuticals market.

LegoChem Biosciences CEO Kim Yong-zu expects that the company’s ADC CDO deal with Samsung Biologics will ensure stable antibody supplies for its ADC therapies at home after years of sourcing them from overseas suppliers.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com

Sookyung Seo edited this article.